Premiums set to rise as reinsurers try to strengthen balance sheets
Cooper Gay has published its 2009 Reinsurance Market Review, which states that reinsurers are intent upon restoring their diminished balance sheets following a period of weakening rates and plunging returns on investments.
Because of this backdrop financiers are insistent that many underwriters raise rates on a range of classes and areas.
Last year, as well as being horrendous in terms of the global banking crisis, was also the third most expensive for the insurance sector, according to the Review.
Cooper Gay’s Reinsurance Division chairman Seymour Matthews has said that last year’s man made financial catastrophe has had a profound effect on reinsurers.
The move echoes that which many banks are trying to make in the wake of the financial crisis which has left many large financial institutions lumbered with huge writedowns, big losses and considerable amounts of toxic debt.
The AFP news agency reported on Wednesday that Chancellor Alistair Darling has reiterated his call for banks to clean up their balance sheets.
Category: Insurance News
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